If You Are Given $20 and Told to Go to the Store

question 176

Multiple Choice

If you are given $20 and told to go to the store and buy as many potatoes as you can, the reason your demand curve for potatoes is downward sloping has mostly to do with

• A)the substitution effect.
• B)the real-balances effect.
• C)diminishing marginal utility.

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Definitions:

Coffee Fund

Informally refers to a pool of money collected for buying coffee or sometimes used as a casual fund for small group expenses.

Allocated

Distributed or assigned for a specific purpose or to a particular person.

Compute

To calculate or process information, often using a computer or mathematical algorithms.

Company Earned

The total revenue or profit generated by a company over a specific period.